1099-NEC Box by Box: 1a, 1b, 1c, 1d and Box 4

October 17, 2026 · 2 min read

General information, not tax, legal or financial advice. We are not the IRS. Check IRS.gov or a qualified tax professional. Sources read on October 17, 2026. Dates and amounts after 2026 are expected. Examples use made-up numbers. This page contains no affiliate links.

Short answer: Per the IRS instructions (12/2026 revision): box 1a is nonemployee compensation of $2,000 or more; 1b cash tips included in 1a; 1c Treasury Tipped Occupation Code(s); 1d qualified overtime compensation included in 1a; box 2 is a checkbox for direct sales of $5,000 or more; box 3 excess golden parachute payments; box 4 federal income tax withheld (backup withholding); boxes 5-7 state information.

Box 1a

Fees, commissions, prizes and awards for services by a non-employee, other forms of compensation for services in your business, oil and gas working-interest payments, and entertainment facility expenses treated as compensation. Parts or materials supplied incidentally to a service are included (the instructions' auto-repair example).

Boxes 1b to 1d

• 1b cash tips (cash or charged by customers), included in 1a.
• 1c up to two TTOC codes; "000" if any tips were in a non-qualifying occupation (see IRS.gov/TTOC).
• 1d qualified overtime: only the "half" portion of time-and-a-half, for example. Whether a recipient can claim deductions for tips or overtime is outside this page.

Box 4 and TIN

Enter backup withholding; for example, payees who haven't furnished their TIN are subject to withholding. Rate: see W-9 and backup withholding.

Boxes 5-7

State boxes are for your convenience and need not be completed for the IRS.

Account number and 2nd TIN Not.

The account number is required if you file more than one 1099-NEC for the same recipient. "2nd TIN Not." may be marked only if the IRS notified you twice within 3 calendar years that the payee's TIN was incorrect.

FAQ

Do I use 1099-NEC or 1099-MISC for rent?

Rent goes on 1099-MISC; see NEC vs MISC vs K.

Where do I put reimbursements?

See what counts.

What we could not verify